Q. I retired after 31 years of government service at age 62. Prior to retirement, I applied for Social Security and was granted, allowing me to receive my benefits. I should add that I was under CSRS. When my annuity was calculated, I was told that they would deduct/offset a certain amount for Social Security because I decided to receive Social Security at age 62. Once I reach 65, will that money stop being deducted? Can I count on it monthly after I reach 65? A. The reduction is permanent.
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Q. I turned 65 and am not paying premiums on basic life insurance as I selected the 75 percent reduction. My life insurance was $54,000. What is it now worth, and how do you calculate what it will be worth once I reach the 25 percent? A. Because you accepted the 75 percent reduction, the value of your insurance will decline by 2 percent each month until it reaches 25 percent of what it was when you retired. At that point, your $54,000 basic insurance will be worth $13,500.
Q. I retired in 2002 with 32 years of service and receiving a CSRS annuity. I am 65 and do not have the required 40 quarters to collect Social Security. My retirement annuity is being reduced for “full surviving spouse’s annuity.” Will my wife, who is 61 and plans to draw Social Security next year (over $600 a month), be able to draw her full Social Security and the CSRS survivor annuity, even though I was not eligible for Social Security, if I pass away before her? A. Yes, she will be able to receive her full, earned Social Security…
Q. I have civil service retirement with the Postal Service. I have been informed that if I do not pay back the Social Security I did not need to pay when I was in my five years of military service, then once I am eligible for Social Security, the payback will start being deducted from that. I thought once that withdrawal started, it would not stop, even after it was paid up. Is this true? And if I pay it back in full now, my Social Security will not be touched for that at all. Is that correct? I am…
Q. I took a reduced Social Security annuity since I decided to draw two years ago at the age of 62. My husband was a government meteorologist for 33 years — three of them being Air Force. We were given the option to pay fully the Social Security for his years in the Air Force. No pension. It counted to his government service and that pension. So we did. $3,600 cash. He retired at 55. So he took a true reduced government annuity, since he did not retire at 65 with the 33 years of service. In the government, you…
Q. I have been retired with CSRS for 15 years. I remarried very shortly after retirement. My first wife had died several years earlier. I added my second wife for full survivor benefit soon after retirement and well within the two years of marriage. Is it simple to remove my second wife’s survivor benefit to save money and receive more pension each month now? I understand it’s a 10 percent reduction to have a full survivor, so would we receive 10 percent more now? Would we receive a benefit of the equivalent of the permanent actuarial reduction that one pays…
Q. I elected the 75 percent reduction after retiring. I understand that, at age 65, the coverage declines 2 percent per month until it reaches 25 percent of its face value. How can I find out what the “face value” is? Is it the salary at retirement? What if I had the 2X salary? Does that have any bearing? I have been told by some retirees that the final amount is $2,000, and by others that it’s anywhere from $8,000 to $10,000. A. When you retired, the amount of your basic insurance was equal to your basic pay plus $2,000. Since you…
Q. I will retire at the age of 58 with 34 years of service under CSRS and fewer than 40 credits in Social Security. My spouse is 56, still working, and is and has always been under Social Security. If I leave my spouse a survivor annuity and I die before him, will either his Social Security or the CSRS survivor annuity be reduced when he collects Social Security? A. No, they won’t.
Q. I am in the Federal Employees Retirement System and will retire Dec. 31. I will be 62 when I retire, with 41 years of service. Because Social Security is part of my retirement, will my Social Security checks be reduced if I work and earn more than the max allowed? A. Yes. Your Social Security benefit would be reduced by $1 for every $2 you earn through wages or self-employment until the year in which you reach your full retirement age. At that point, the reduction would be $1 for every $3 you earn. There is no limit to…
Q: Your recent article on the Personal Advisor in the Nov. 2 issue of Federal Times described retirement benefits. You note that in 1983, “Those already covered by [Civil Service Retirement System] had the option of electing full coverage under both CSRS and Social Security …” However, your description doesn’t seem to recognize the Windfall Elimination Provision, such that those who elected to be covered by both get the severe reduction on their Social Security from the WEP. Is my understanding correct, or is something on WEP changed? I understand that I will get the WEP reduction on my Social…